The URL can be used to link to this page

Home My WebLink Aboutresolution.council.076-99 RESOLUTION # (Series of 1999) A RESOLUTION APPROVING A COST SHARING AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND HOLY CROSS ENERGY, SETTING FORTH THE TERMS AND CONDITIONS REGARDING AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT. WHEREAS, there has been submitted to the City Council a proposed cost sharing agreement between the City of Aspen, Colorado, and Holy Cross Energy, a copy of which agreement is annexed hereto and made a part thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That the City Council of the City of Aspen hereby approves a cost sharing agreement between the City of Aspen, Colorado, and Holy Cross Energy, regarding the completion of a second electrical feed line, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the Utility Director of the City of Aspen to execute said contract on behalf of the City of Aspen. / . ' s, Mayor I, Kathryn S. Koch, duly appointed and acting City Clerk, do certify that the foregoing is a true and accurate copy of that resolution adopte~ by the Cit~y Council of the city of Aspen, Colorado, at a meeting held ~~/~, 1999. Kathr~'S. Loch, City Clerk 8123/99 Mr. Richard BHnklcy, Manager of Engineering Se/vices Holy Cwss P.O. ~er 2150 Glenw~ S~, CO 81 ~2 ~: City ofAs~n-F~c~ S~t f~ ~ ~h~f of ~or ~ Ci~ of A~ s~ ~d ~e City El~c I would like ~ ~k yOU ~d Holy Cr~s En~ for ~si~ng ~e C orA ~th ~e F~cis S~et f~ ~j~. Wi~o~ HCE ~si~ wi~ ~e m~r~s, c~s~on, en~F~, ~d meting it would not have ~ ~ssibl~.te ~hcdule ~e ~j~ ~ completion ~is F~I ~d have it ~ ~f~c the ~ w~t~ "99 - ~00 ~. We ~t~d ~ ~s new. m~ ~ wilt ~ble HCE to ~v~r a fgw ~w~ as avail~le ~is y~ and ~ m ~ of a new 16 mega~R ci~uit when ~e R~ Bu~ cir~it ~d' ~b~on m~tio~ ~ ~pl~. A s~i~ ~ you to ~: ~ ~ ~s co~ ~ f~ t~g on &is p~j~ d~ng this b~ fmc of ye~, Si~ly. Kopf & K~fBl~c~ En~er~ Clemon$ M. Kopf,.Pria~ilaal Cc: Amy Margenun, Phil Ov~xaud~r, Jin~ Capon'ella Cop! Cop! lec rical ngineermg Utility and I~ F~c~ S~ D~ August 10, 1999 Mr. Jinx Caperrella~ Supt. Aspen Electric System Fax # 544-3160 Dear Jinx, Per your request, following is an estimate of the cost of comploting the cai>lc, switcllgear, a~d m~toring asl~t* of the City portion of tho Francis street fcedex proje*t. This projoet will enable the City to draw a couple ofmegawatts at flxis new location until Holy Cross Enex3gy and the City jointly eomplcta the rest of the project back to the Airport Substation when approximately ½ of the feeder capacity or 8 me~gawatts will be available. Item ! Quantity unit unit labor Total Ivl~L $ Total 500mcm 12500 2.821 2.00 4.821 $60,262 cable Splices 33 85 55 130 4290 Terminators 21 65 55 110 2310 ~ PMIff-I1 1 12,756 500 . 13,2.56 13,256 . PMI-I, 11 lid 1 800 500 1300 1300 i Meter I 10000 500 10,500 10,500 cabinet Meter 1 4000 1000 5000 5000 Phone line 1 500 500 1000 1000 HCE misc. 1 3000 2000 5000 5000 I-ICE SWG 1 14000 1000 ! 5000 Sub total 117,918 Salon ta~ 7% 8,254 0v,rheads 10% 11,791 Engineering 15,000 Con6ngency 15% 17,687 Tol~l $170~650 TOT~L P,O1 MEMORANDUM TO: MAYOR AND COUNCIL THROUGH: AMY MARGERUM, CITY MANAGER~TM THROUGH: JOHN WORCESTER, CITY ATTORNEY ~ FROM: PHIL OVEREYNDER, WATER DIRECTOR ~ DATE: SEPTEMBER 3, 1999 SUBJECT: COST REIMBURSEMENT AGREEMENT WITH HOLY CROSS ENERGY FOR COMPLETION OF FRANCIS STREET FEED LINE- SECOND FEED LINE SUMMARY: Approval of a cost reimbursement agreement with Holy Cross Energy (HCE) will provide for increased electrical capacity and a higher level of reliability for the City's electric customers. The practical capacity of the existing electric feed line has been reached with increases in electric demand. This project is expected to be completed in two phases in order to provide additional time for HCE to secure necessary easements to complete the extension of the line to the electric substation at the Airport Business Center. PREVIOUS COUNCIL ACTION: In 1997 Cotmcil approved a $750,000 appropriation for the purpose of completing a second electrical feed line. Because of on-going negotiations with HCE over financial responsibility for this work, only the portion of the project within the City's direct control was completed. This included placement of an electrical conduit for a future second electrical feed line in Francis Street as part of the Francis Street storm drain project. During the 1999 mid-year review of the Electric Fund Budget, Council requested that immediate action be taken toward completion of a second electrical feed line. Staff explained that this was be'rog accomplished through an agreement with HCE and that staff would return with a specific budget request when the cost of the first phase of construction was better defined. FINANCIAL IMPLICATIONS: The expected cost of work remaining to be completed is $565,000. HCE will share 50% in a portion of the second feed line from the sub-station at the AABC to the City's point of dehvery and will be entitled to 50% of the capacity to that point. Completion of Phase I of the project in 1999 will entail installing cable from an electric vatdt near the Red Brick School to the connection with HCE's system at 8* and Smuggler. The expected 1 cost of Phase I, including switch gear and monitoring cost, is $215,000. Phase I costs include: purchase of the cable ($35,000); reimbursement to HCE for instaJ/ation costs ($170,000); and, miscellaneous expenses ($10,000). Phase II will involve completion of a new conduit and electric cable from 8th and Smuggler to the AABC Sub-Station and is expected to be completed next year. The City's share of Phase II costs is expected to be $350,000. These funding requests are included in the Asset Management Plan. The Long Range Financial Plan for the Electric Fund shows that there is available funding to complete both phases of the project as proposed while ma'mtai~fing an adequate reserve account. BACKGROUND: A second feed line is necessary to increase the capacity of the City's electrical system to serve existing and future customers. It w/il also increase the reliability of both the HCE and City's electrical systems in the event of failure of one or more components of the existing system. The CRy and HCE have established a practice of utilizing a connection at Koch Lumber Park to more evenly distribute peak loads in late December, but this a short-tem~ solution. Demand from the Cky's customers in the peak fmae period is approaching the rated 15 MW capacity of the existing primary feed line and action is~ necessary to ensure that the system retains adequate capacity. Completion of this project w/]l increase the rated capacity from 15 MW to 22 MW and provide the City the ab~ty to meet approxhnately 25 years of additional load at current growth rates. CURRENT ISSUES: Phased construction of the second feed line is necessary to allow sufficient tune for easements to be obta'med across the Zoline property or other potential routes to the AABC Sub-Station. Completion of Phase I is expected to increase the total system capacity by 4 to 5 MW, which could be shared by the City and HCE this winter season. The total 15 MW in increased capacity, also shared by HCE and the C/ty, would be ava/lable upon completion of Phase II next smxnner. RECOMMENDATION: Staff recommends approval of a cost-sharing agreement with HCE for completion of Phase I of the second electrical feed line project. PROPOSED MOTION: I move to authorize staff to enter into a cost-sharing agreement with Holy Cross Energy for completion of the first phase of the second electrical feed line. I also move to appropriate $215,000 from the Electric Fund for construction of Phase I of the second electrical feed line. CITY MANAGER COMMENTS: 2